Wealth Shortlist Update: Schroder Asian Discovery

We’ve been informed by Schroders that previous managers Robin Parbrook and Alex Deane have stepped down from managing the fund. They will remain at Schroders but will focus on other fund management responsibilities - Parbrook will continue to focus on other Asian funds while Deane will focus on global smaller companies funds.

Pablo Riveroll and Mohsin Memon have taken over as the fund’s managers. They will focus specifically on Asian and emerging markets smaller companies. The change follows an internal review by Schroders, including of how resource is used across various funds.

Our view

We’re disappointed to see Parbrook and Deane step back from the fund. Parbrook is an experienced investor in Asia and one we rate highly.

Riveroll and Mohsin are senior members of the Emerging Markets team at Schroders. Riveroll is Head of Latin American Equities and Head of Equities Research, while Mohsin is Head of EMEA (Europe, Middle East, and Africa). Both have managed funds focused on their respective regions since 2014.

They also manage the Schroders Global Emerging Markets Smaller Companies fund, which has tended to invest around 60-70% in Asia and gives them some relevant experience. That said, the fund has invested in different companies to Asian Discovery.

We’ve met with Riveroll and Mohsin to discuss their plans for the fund. While they’ll continue to use the same research as the previous managers, we expect the fund to be managed using a slightly different approach. We expect meaningful changes to the fund over time, as the new managers sell some investments in favour of those where they have higher conviction.

Given our conviction in this fund mostly rested with Parbrook, the new managers don’t have specific experience in managing an Asian smaller companies fund, and that a different investment approach will be used, we’ve decided to remove the fund from the Wealth Shortlist.

Although we're removing the fund from the Wealth Shortlist, this isn't a recommendation to make any changes to an investment portfolio. Investors should make sure any investments match their investment goals and attitude to risk and are held as part of a diversified portfolio. If you're unsure if an investment is suitable for your circumstances, please seek personal advice.